Ponzi Schemes in UK. Edmonds Marshall McMahon is a unique firm of solicitors and barristers, and we are experts in conducting fraud prosecutions. We commonly advise on investment frauds, including Ponzi schemes, which are presented to victims as a way to “get-rich-quick”. As you may know, under Ponzi schemes (also known as pyramid schemes), the operators pay existing investors with money from new investors – in this way, the venture yields concrete results, gaining momentum and a good reputation. Ultimately, the operators vanish with all the investors’ funds and the scheme collapses. We have significant experience in ensuring that victims of this kind of fraud are financially compensated and that defendants are denied the proceeds of their crime.
Ponzi schemes and investment fraud are part of a wider crisis in the UK. In January 2021, the Royal United Services Institute (“RUSI”), a defence and security think tank, published a paper explaining that fraud in the UK has reached epidemic levels. According to this paper, fraud is the “volume crime of our time”. Notwithstanding increased media attention on the issue, the UK government’s fraud response continues to fail individuals and businesses. Budget cuts to the police and Crown Prosecution Service have limited the prioritisation of fraud, even as reports continue to rise. This state of affairs is at the heart of Edmonds Marshall McMahon’s mission – as private prosecutors, we specialise in providing fraud victims with access to justice.
We understand that Ponzi scheme victims may feel embarrassment, leading them to batten down the hatches and not report crimes. Crucially, however, private prosecutions have a significant deterrent effect on fraudsters who target investors, some of whom may be particularly trusting and vulnerable. Bringing a private prosecution sends a clear message to fraudsters – that individuals and companies will take decisive action to route them out.
Whatever the fraud, please talk to us (free of charge) so we can advise you on what is possible. As specialist prosecutors, we have the knowledge and resources that could make the difference between your recovering some, or indeed all, of your money.
